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In 2014 Boston residents weathered a brutal winter storm that tore through their city, and began to assess their losses. While economists measured damages in wages lost and the costs of snow removal, homeowners had different concerns on their minds – damaged roofs, burst pipes, flooding. Individually, these were annoyances that would cost upwards of several thousand dollars per household. For many Boston homeowners, the answer seemed simple. All they needed to do was file a claim with their home insurance company. Because thousands of other homeowners did the same thing at the time, insurers inevitably raised prices to offset the damages they sustained. The Boston Globe reported that the cost of homeowners policies Massachusetts increased by as much as 9%.

WASHINGTON, DC - JANUARY 28: Snow removal continues nearly a week after the area was hit by a major snow storm on January 28, 2016 in Washington, DC. The east coast is still digging out from the large storm that hit the east coast last weekend, breaking snowfall records, causing 29 storm-related deaths, and serious flooding in coastal areas. (Photo by Mark Wilson/Getty Images)

In New York, for example, the average annual premium for a sample home is approximately $832. Given that the scope of winter storm Jonas is much greater than what happened in Boston during the 2014 storms, it’s highly probable that the average may jump up over $900 in 2016. During the course of a year with no major weather events, premium increases would have been significantly lower – likely just above the regular rate of inflation.

Home insurance companies generally expect some underwriting losses during their regular course of business. Typically, they expect to see a loss ratio no bigger than 60%. In the past, major events and industry shifts have affected the number of claims being filed, causing the companies to respond with price adjustments – in other words price hikes. We’ve seen this previously in the auto insurance industry, where a drop in oil prices led to an uptick of accidents, forcing companies like and GEICO to file price increases across the whole nation.

Should Homeowners Be Filing Insurance Claims?

The root of the problem arises from small claims being filed in large volume. A damaged roof or a broken pipe may seem to some as the perfect opportunity to use that home insurance policy they’ve been paying for so long – something that can be a costly mistake. Before you call up your agent and decide to file a claim, there’s a quick mental checklist.

Consider Your Deductible. All homeowners policies come with a deductible – these typically range between $500 and $2,000. Deductibles are fully applied each time you make a claim. Before submitting one, consider how much money you will be saving once your deductible is paid. For example, if the cost to repair your roof is $1,500 and you have a $1,000 deductible, you would only be saving $500. While that may still seem like a substantial savings, consider the long-term costs associated with making a claim.